When it comes to exploring new avenues of business growth or portfolio expansion, it’s important to make sure you’re establishing the right partnerships. For US-based entrepreneurs and investors, this is easier said than done, with so many different networking avenues to choose from when looking to grow international reach.

But while each region overseas has its own strengths and weaknesses when it comes to business expansion, countries like Lithuania have shown considerable advantages when it comes to establishing transatlantic partnerships. Its strategic location, strong government funding programs, and innovative culture have made it the perfect location to focus on.

Below are some of the reasons why considering Lithuanian partnerships is a great move for established businesses and potential investors.

Access to a Highly Skilled Workforce

Lithuania’s buzzing economy and tech scene have made it home to a variety of skilled professionals, many of whom have put a large amount of interest in STEM (science, technology, engineering, and mathematics) studies. This has led to a highly capable workforce of individuals specializing in areas like IT, engineering, and biotechnology.

Lithuania also has a strong network of well-established universities and research institutions. These educational facilities maintain extremely high academic standards and have become incredibly valuable in helping the country expand the capabilities of working professionals. 

One of the defining characteristics of Lithuania is the country’s focus on developing new infrastructure and continuously innovating available technologies. This culture for ongoing learning and encouragement of progressive, forward-thinking approaches in business has led to the development of highly passionate professionals eager to make a difference for the organizations they work with and society as a whole. 

Strategic Geographic Location

Lithuania is a country in the Baltics located between Northern and Eastern Europe. This gives it highly strategic access to a different range of markets and provides an optimal location for establishing logistics operations.

Access to EU and CIS Markets

In 2004, Lithuania became a member of the European Union, bringing with it a number of strategic advantages for organizations doing business in the region. Access to the EU provides a potential market of nearly 500 million consumers. As a member of the Customs Union, the country has also removed import and export restrictions between Latvia and Poland while also providing freedom of movement to all citizens across Europe.

This trade and talent pool flexibility, along with close access to the CIS (Community of Independent States), has placed Lithuania strategically providing ample opportunities for U.S. suppliers to expand their presence across the EU, contributing to $50 billion in exports and $58 billion in imports in the last couple of years.

Strong Focus on Technology and Innovation

Lithuania has become well-known for its quickly advancing tech scene. The country currently invests heavily in research and development, which has resulted in the development of a number of cutting-edge technologies and solutions. Some of the country’s primary areas of focus include:

• Fintech: Lithuania has a growing hub of 276 Fintech companies that employ over 7,400 professionals. This represents a 402% increase from 2014 and is made up of a large number of crowdfunding, payments, and regulatory technology (RegTech) companies. According to recent business polls, 75% of fintech organizations in Lithuania are seeing consistent growth, with over 30% projecting double-figure revenue growth over the next year.  
• Biotechnology: Lithuania has developed a strong biotechnology sector, and is home to an extensive workforce of over 15,000 researchers and scientists helping to introduce new innovations across all life sciences. The Lithuanian government has set a goal of having 5% of their GDP supported by life sciences by 2030 and currently has a sector profile made up of BioTech, MedDev and MedTech, and Industrial BioTech. with research institutions and companies regularly engaged in the manufacturing of new drugs, medical devices, and diagnostic tools. 
• Laser Technology: Lithuania is one of the global leaders in laser technology and currently exports new solutions to over 80 countries. Over 60 companies in Lithuania focus their R&D efforts on industrial ultrashort pulse, high-intensity petawatt and terawatt-class, and unable wavelength lasters used in a variety of industries. With a photonics sector that has grown more than 16% over the past decade, the country has become a major player in laser technology.

A Budding Startup Ecosystem

For startup businesses to not only survive but thrive, they need to be established with the right foundation. Thankfully, Lithuania provides a great startup ecosystem that’s fueled by a growing number of business incubators and accelerators, along with strong government backing for entrepreneurs looking to launch new ventures.

Lithuania currently has one of the fastest-growing startup environments in all of Central and Eastern Europe. Since 2018, it has continued to surge and has become a major hub for introducing new solutions into global markets and is home to some of the most progressive and fast-moving startups. 

How InnoHub Lithuania is Helping to Facilitate New International Partnerships

While Lithuania’s startup scene is continuing to grow, bringing these innovations to the global markets and creating new opportunities for transatlantic partnerships requires additional coordination and support. 

InnoHub Lithuania has provided a helpful way for US and Lithuania-based businesses and investors to help bridge this gap by providing essential resources, business guidance, and professional networks to help drive international expansion efforts. With localized knowledge of startup businesses and trade regulations in Lithuania and a strong understanding of US markets, InnoHub Lithuania is able to offer a wide range of services to help strengthen new business ventures.

These member services include:

• Mentorship and Industry Connections: InnoHub Lithuania connects Lithuanian businesses with experienced mentors, industry experts, and leading academics and researchers in the US, providing valuable guidance for businesses from seasoned professionals who can help navigate international expansion efforts. 
• Networking Events and Workshops: InnoHub Lithuania hosts a variety of networking events and workshops designed to bring together local Lithuanian businesses and international investors. These events create a platform for building long-term relationships and exploring new venture opportunities.

EU Membership and Ongoing Business Support

Lithuania’s membership in the European Union brings a number of advantages for businesses. The country’s proven adherence translates to higher standards of business practices, increased consumer protection, and supportive legal frameworks that minimize the risks of businesses expanding into unknown markets.

Adding to this benefit, Lithuania has also built a stable political and economic environment, which is important when trying to ensure profitable long-term partnerships. The country’s commitment to transparent governance reduces uncertainty and leads to more sustainable partnerships.

Lithuania also provides ongoing support to businesses through various government initiatives and agencies. These resources offer invaluable resources and access to funding opportunities that can help to streamline growth efforts.

Start Expanding Your Venture Overseas

There are so many advantages for businesses when looking at Lithuania to help expand and grow their organizations or explore new investment opportunities. By exploring new partnerships in the region, US companies can gain access to a thriving startup ecosystem and innovative workforces that can support their growth objectives.

Author Bio

Diana, the Business Community Manager at InnoHub Lithuania, is an experienced community builder. She has worked with early-stage startups, government initiatives, and small businesses. As a representative of Innovation Agency Lithuania in Silicon Valley, she serves as a liaison between Lithuanian tech companies and the Silicon Valley ecosystem. 

Additionally, Diana spearheaded the San Francisco American Lithuanian community for over four years, establishing new initiatives and programs for professionals. Diana holds an MBA from Mills College in Oakland, California.